On 30 June 2019, Intertrust N.V. (AMS:INTER) announced its latest earnings update. Overall, analyst consensus outlook seem bearish, as a 11% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 48%. With trailing-twelve-month net income at current levels of €89m, the consensus growth rate suggests that earnings will decline to €80m by 2020. Below is a brief commentary on the longer term outlook the market has for Intertrust. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
How is Intertrust going to perform in the near future?
Longer term expectations from the 5 analysts covering INTER’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for INTER, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 12% based on the most recent earnings level of €89m to the final forecast of €110m by 2022. This leads to an EPS of €1.23 in the final year of projections relative to the current EPS of €1.0. Margins are currently sitting at 18%, approximately the same as previous years. With analysts forecasting revenue growth of 0.23347 and INTER's net income growth expected to roughly track that, this company may add value for shareholders over time.
Future outlook is only one aspect when you're building an investment case for a stock. For Intertrust, there are three relevant aspects you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Intertrust worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Intertrust is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Intertrust? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.